U.S. Finance Regulators Targets Cryptocurrency
The Financial Industry Regulatory Authority (FINRA), a self-regulatory body for broker-dealers has announced a regulatory notice to order its members to alert the authority of they participate in any cryptocurrency activity.
Although the notice states what is regarded as cryptocurrency activities, it, however, does not give detail on how FINRA would use this information nor it anything revealed on its website. Since the self-regulatory body concentrates on safeguarding retail investors in all financial markets, it can be expected that the information will help this aim.
FINRA states,
“FINRA is issuing this Notice to encourage each firm to promptly notify FINRA if it, or its associated persons or affiliates, currently engages, or intends to engage, in any activities related to digital assets, such as cryptocurrencies and other virtual coins and tokens.”
Similar to many of the SEC’s closed-door discussions on cryptocurrency controls, particular as they connect to the “Howey Test” for ICOs, FINRA’s notice leaves much to be desired on the next plans of the body for protecting investors.
